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Risk Assessment

The output of a risk assessment helps determine a firm's risk appetite and approach to risk management. Therefore, risk assessments are essential.

A risk assessment is a systematic process used to identify risks and evaluate key risk elements which include probability, impact and the expected value or cost.

Our Risk Assessment Course will help you learn how to assess the probability and impact of risk as well as understand the different methods of analysing it.

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  • 45 Minutes
  • For all staff
  • Based on best-practice risk management frameworks and suitable for global audiences.

Learning objectives

  • Perform the overall risk assessment process
  • Estimate the probability and impact of risks
  • Assess the proximity and expected value of risks
  • Use different methods and techniques to assess risks, such as risk matrices and heat maps
  • Distinguish between inherent and residual risk
  • Understand how risk models work and how you can apply them
  • Create a summary risk profile and risk map for any risks you come across in your role

    What can you expect your employees to learn?

Welcome

  • Learning objectives
  • How to complete this course

What is risk assessment?

  • The Management of Risk (MoR) framework

Categories of risk

  • Assessing risk: The basics
  • Examples: Probability
  • Examples: Impact
  • Assessing the probability of risk
  • Case study: Probability assessment
  • You decide: What are the chances?
  • Assessing the impact of risk
  • You decide: What impact would it have?
  • Risk assessment matric
  • Applying the risk assessment matrix
  • Scenario: Calculating the overall score
  • Assessing the proximity of risk

Using methods & techniques to evaluate risk

  • EMV assessment
  • Calculating the EMV: The manufacturing plant
  • Calculating the EMV: The cloud computing company
  • You decide: Calculating the EMV
  • Summary risk profiles
  • Plotting risks on heat maps
  • Inherent versus residual risk
  • You decide: Inherent or residual risk?
  • Probabilistic risk models
  • Probabilistic trees
  • Sensitivity analysis
  • You decide: Techniques to evaluate risk

Summary

Affirmation

Assessment

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Your questions, answered

Risk Management

How does conduct risk differ from compliance risk?

Conduct risk focuses on behaviour and outcomes, how actions affect customers and markets -  while compliance risk relates to failing to meet legal or regulatory requirements. Conduct risk is broader and more subjective, often tied to culture and ethics.

Who is responsible for managing conduct risk within a firm?

While senior leadership sets the tone, managing conduct risk is a shared responsibility across all levels, from front-line staff to compliance teams. Everyone plays a role in identifying and mitigating risky behaviour.

Can conduct risk exist in non-financial sectors?

Yes. Although the FCA regulates financial services, conduct risk principles apply across industries. Any business that interacts with customers or influences markets can face conduct-related challenges.

How can technology help reduce conduct risk?

Tools like automated monitoring systems, AI-driven analytics, and e-learning platforms can help detect risky patterns, reinforce ethical behaviour, and ensure consistent training across teams.

How often should proliferation financing risk assessments be updated?

Best practice suggests reviewing risk assessments annually or whenever there are significant changes in business operations, customer profiles, or geopolitical developments.

Why is risk scoring important for my business?

Identifying potential risks around your business is not enough. Tracking how your company manages them helps you implement policies to prevent them. The best way to get started is with a risk scoring matrix.

What is a risk scoring matrix?

A risk scoring matrix helps identify the level of risk for specific activities, such as personal data. By measuring the likelihood of something happening against how serious the consequences would be, it helps you see which areas to focus on. And what policies or procedures to put in place.

Related courses

Boost your compliance efforts with our range of courses. Varying in length and topic, our courses equip you with the tools to create an ethical and resilient workplace.

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